The property market in the UK is still firmly in a bubble, with prices now the highest on record.
According to the latest Halifax House Price Index, house values grew by 0.4 per cent in August, taking them to an average of £294,260.
This is the seventh month out of eight this year that property values have broken previous records, as prices are now more than £30,000 higher than they were in August 2021.
Director of Halifax Mortgages Kim Kinnaird said the 0.4 per cent monthly increase was “relatively modest” compared with recent figures, but it still shows prices are increasing, despite predictions they would fall this year.
“While house prices have so far proved to be resilient in the face of growing economic uncertainty, industry surveys point towards cooling expectations across the majority of UK regions, as buyer demand eases, and other forward-looking indicators also imply a likely slowdown in market activity,” Ms Kinnaird stated.
She noted the cost-of-living crisis, the increase in energy prices, and the restriction on mortgages, will have an impact on the housing sector, forcing prices to come down.
It was believed this decline had started to occur in July, when prices dropped for the first time this year, falling by 0.1 per cent over the month. However, August’s figures offset this, forcing prices up.
London homebuyers will be pleased to hear prices in the capital have not increased as much as elsewhere in the country, with an annual growth of 8.8p er cent, compared with 11.5 per cent nationally.
First-time buyers (FTBs) should remember they need to apply before October 31st if they want to take advantage of the government’s Help to Buy equity loan initiative, which helps them purchase a new build home with only a five per cent deposit.
Take a look at properties for sale at our Hackney estate agents in London.